Who among us a year ago thought we’d be nervously eying Latvian budget negotiations? Concerns over a potential Latvian devaluation have simmered down in recent weeks, but traders remain concerned that a domino effect across eastern Europe could hit heavily exposed banks in western Europe and in Scandinavia. Those fears are subsiding as Latvia works with the IMF to secure a funding package.
EU economics czar Almunia welcomes a preliminary budget agreement which should allay investors fears in the near-term.
EUR.USD is consolidating gains at 1.4857.
